Excess capacity or "slack" in the labor market and the industrial
system is diminishing as the economy kicks into higher gear, and
this looks likely to lead to higher prices (shortages = price
increases).

Effective rent growth was 2.4% on a quarterly basis nationwide in
April-June 2014, the highest quarter-to-quarter rate since the
2.9% of July-September 2000. Occupancy in the second quarter of
2014 was 95.0%, the strongest since the 95.6% of January-March
2001.

Both rent growth and occupancy exceeded expectations.

Effective rent growth was soft in January and February, perhaps
because of the major winter storms and bitter cold temperatures
that gripped much of the nation during the early part of this
year. But March, April and May was one of the strongest
three-month stretches we’ve seen in the 19 years Axiometrics has
been tracking apartments.